Opinion: The Obama Budget Blowout

This transcript has been automatically generated and may not be 100% accurate.

... I ... aam I announced his budget this morning what sub listen to what he had to say ... the numbers work ... the smell of smoke and mirrors and here ... if we can come together ... have a serious ... reason to ... debate not driven by politics ... and come together around common sense and copper mines ... the comforter will move this country forward ... to leave behind something better Proechel ... at Suntech's ... welcome back to Opinion Journal that was present Obama talking about his White House by J in these last hours in a few believe those numbers were well ... we've got a bridge to sell yet ... editorial board member Steve Moore is joining me now on the line from Washington ... Steve I guess was that the slide begins ... viewers a broad outline of what the president ... announced today ... I am looking in at seven hundred and forty four billion dollars deficit ... capping deductions and twenty eight percent chained CPI infrastructure bank ... five minutes on individual retirement account set up the syntax ... of carried interest treated as income ... Augustine did these numbers that an optimistic take on a budget ... you know Mary Opko was what pointed out years ago that Barack Obama promised that he would be a transformational president if he was selected and ... on for Chile that's a promise that he stopped yes been transformational and nowhere have we seen that ... more evident than in the his handling of ... federal budget and tax and fiscal issues ... he is transformed doubt that this budget into a colossus with ... trillion dollar deficits not in his first term and that are now looking as he set about seven hundred fifty billion dollar deficits for his second term ... though the new spending that you talk about is almost all financed with ... new taxes as I look through this budget the only some small car that you can find in this budget is this change in the formula for um ... for calculating ... increases in so Security benefits but that's ... really pretty trivial it's about a hundred fifty billion dollars in savings over ten years ... mostly this is a body increase in spending increase in taxes and increasing the size and scope of government which is precisely what this president has wanted to do since the day he entered office ... steep the president says this is a court imposed balanced approach ... ay ay ay ay balance meeting raising taxes for more spending ... um what about the entitled to re form is there any serious ... serious ideas it all in this document ... well of a given us the first car were you shocked about the Processing's balance ... you know that the White House press release as this has two dollars of spending reductions for every dollar tax increase now ... that's a little hard to swallow legislate that the numbers of federal spending over the next five years goes up by six hundred seventy billion sell ... Mary Kay Intel the winner of the dollar the two dollars in spending cuts are one of six other seventy billion more spending ... over the next five years and of course the truth is that almost all of the ... increase in spending in this you mentioned infrastructure back there's a new universal preschool program ... there are other new spending proposals as well ... those would be financed with about one point one trillion dollar tax increase and Mary let us not forget we already have the six hundred billion dollar tax increase in the fiscal God will feel that that that place in January ... and I'm proud of that year before that we have a trillion dollars of Obamacare tax increases so this would be I'd gigantic tax increase to pay for more spending if that balance I guess that's a new high usage of the time ... Steve back in his remarks this morning the president said and I quote ... our economy is poised for progress as long as Washington doesn't get in the way ... where is the band for the last four years ... the idea now I've been saying not for ... the last couple of years ago you know why she would stay on the way I agree with them I think a cap on the earliest poised for recovery the problem is that ... this budget and the sponsor then headed back this Congress while stop poking its finger in every area of the major industry in America but I just give you some examples of myriad that of major industries that are impacted negatively by this budget the energy industry the education industry the health care industry the finance industry you know you just go down the line in every industry wants to be left alone during this budget doesn't do what this president believes that he is providing a kind of helping him on ... every industry when what they really want is to be about the law ... said Steve we now have three budgets out there the house the Senate now the White House generation ... I'm Wendy see this going politically ... I think the most remarkable thing about this budget in other than most of the mainstream media's got the story wrong they keep saying oh my gosh this is a giant olive branch by present Obama ... to reach out to the Republicans maybe have a tax increase in some these kind of reforms to get a grand deal ... this is not a grand deal budgetary this is a left wing document ... that contains a lot of new spending and actually increases spending over what would happen if we did not think a trillion dollars of tax increases the Republicans are basically declared this that of rival and are exactly right to do so so there were no closer to that one grand bargain today that we were six months ago in fact I would say this is ... a state hidden in the reverse direction said Steven Reid SOPA continuing resolutions every couple of months to keep government will you know Mary we could do worse than not ... that this budget is doing is worse than that ... Republicans said that if we just continue to operate the budget at this point on automatic pilot it's not so terrible actually these cuts we saw that positive effects of the sequester that's happening now ... though the news gets tighter on federal programs next year or so I think Republicans could do a lot worse than doing nothing ... body and know that probably will the CCD worse by doing nothing but it's definitely worth it this White House budget ever came to pass reached exactly Bank in a statewide anti regulatory Opel is under this budget is a step in the wrong director at it and that's probably an understatement editorial board member Steve Moore ... thank you so much for being with us